The Eastern District Court of New York entered a final judgment against Marc Wexler, charging him with violating certain provisions of the federal securities laws.
According to the SEC’s complaint, beginning in 2013, Wexler engaged in a scheme to manipulate the price of the securities of CodeSmart Holdings, Inc. (CodeSmart). The SEC alleged that Wexler and others attempted to flood the market with CodeSmart stock and engaged in a hype campaign to artificially inflate the stock price.
The SEC further alleged that Wexler personally dumped CodeSmart shares into the market while working with two brokers who were simultaneously buying CodeSmart shares in their clients’ accounts.
In connection with this scheme, Wexler allegedly earned over $2 million.
The SEC’s complaint charged Wexler with violating Sections 5(a), 5(c), and 17(a) of the Securities Act of 1933, Sections 9(a) and 10(b) of the Securities Exchange Act of 1934, and rule 10b- 5 below.
On December 22, 2022, the Court entered a partial consent judgment against Wexler, in which he agreed to be permanently relieved of the charged provision violations and agreed to a cent share bar and an officer and director bar.
On December 4, 2023, the Court entered a final judgment against Wexler by consent, in which he agreed to be permanently freed from violations of the charged provisions.
Agreed to disgorge $2,218,599 in ill-gotten gains and prejudgment interest thereon, the payment of which was deemed satisfied by the restitution order in the concurrent criminal proceeding.